Compensation trends for the insurance industry.
The insurance field is seeing a steady increase when it comes to pay across key demographics. The market for talent is becoming more competitive than ever before, and the amount employers are willing to pay is reflecting the shortage. Read our compensation report to see how earnings in the industry are trending among college grads, experienced employees, and how much you should be expecting to increase your income as you move throughout your career.
College graduates – Paying more for promising candidates
The average starting salary for a recent college grad in the Midwest sits at around $42,000. But if you’re looking to start a career in the insurance industry, you could be looking at making roughly $53,000 on average. The reason? Less qualified graduates means more competition for people with the right skills and education to fill essential roles. Fewer companies are providing valuable training for new hires, so that means they’re looking for young applicants who already have impressive internships or summer mentorships to fill their ranks. Companies are really searching for well-trained and qualified college graduates, but they’re not willing to put in the time to train those individuals themselves. That leads to higher starting salaries for promising young employees.
Career progress – What’s a year of experience worth?
What’s a year of experience worth – around $2000-$3000 according to recent data. Companies need experience, and they’re willing to pay to acquire and keep it. People in the prime of their career are seeing an increase in lucrative opportunities as businesses try to fill their gaps in training and development with people from the outside. This practice can be beneficial for applicants and costly for companies. Organizations are reevaluating compensation increases and bonus structures to make sure their best and brightest employees aren’t lured away by a bigger offer. If you’re a job seeker, this can be a rewarding time to make a move, but remember, when it comes to career satisfaction, money isn’t everything.
Veteran employees – Why they’re worth the investment
The biggest jump in compensation we’re seeing is after an employee reaches 10 years of service or more. That’s when they’re well versed in the insurance business, knowledgeable about best practices and historical successes, and valuable mentors for younger employees. Companies are not only competing with each other for these professionals, but are also having to pay to keep them out of retirement. Baby Boomers are leaving the workforce in record numbers, and filling their high-level roles can be a challenge for employers. That’s why instead of the typical $6000-$7,000 increase for three to four years of additional experience; they’re seeing salaries rise by $8,000-$10,000 every four to five years.
With talent acquisition more competitive than ever in the insurance industry, employers need to get creative with benefits, work hours and cultural perks, or face the reality of overpaying to keep current employees or lure new ones away from competitors. Recruitment firms, proper training and flexible benefits are a few of the ways companies are keeping their search and hiring costs down, but with the lack of education and talent in the industry, it looks like insurance will remain a candidate-driven market for the time being. That can certainly be costly for businesses, and lucrative for qualified job seekers in the industry.